Matthias Kehrig

Assistant Professor, University of Texas at Austin

Matthias Kehrig is currently an Assistant Professor at the University of Texas at Austin. He earned a PhD and MA in Economics from Northwestern University after graduating with a dual MA in Economics and CEMS Master in International Management from the University of Cologne and the Stockholm School of Economics. Matthias Kehrig is a macroeconomist working on business cycles, uncertainty and firm dynamics. His particular research interest focuses on how firms treat uncertainty, how firm-level differences shape aggregate outcomes and how aggregate fluctuations in turn influence firm-level dynamics.

His recent research asks how business cycle fluctuations impact individual firms differently: Do recessions lead to a shakeout of unproductive firms? Or do these firms crumble under the higher competitive pressure in booms? When do highly productive firms enter the economy and advance the state of technology? To answer these questions, he uses Census plant-level data to establish that there are fewer unproductive firms in booms than recessions. In related work, Dr Kehrig shows that multi-unit firms are not very effective at channelling resources to their most productive plants. Markets on the other hand tend to allocate resources to the most efficient firms. He shows that a considerable share of misallocation in the economy can be attributed to these firm-internal inefficiencies.

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